2. On July 15, 2017 Maky Company collected in advance cash of P96,000 from a tenant of her building. This represents rental, which covers from the period August 1, 2017 to August 1, 2019 (two-year contract). How much is the earned portion of the rental collected in advance for the year ended December 31, 2017? b. How much is the unearned portion of the rental collected in advance for the year ended December 31, 2017? c. Assuming that "Income method" was used in recording the precollection, what is the adjusting entry on December 31, 2017?

2. On July 15, 2017 Maky Company collected in advance cash of P96,000 from a tenant of her building. This represents rental, which covers from the period August 1, 2017 to August 1, 2019 (two-year contract). How much is the earned portion of the rental collected in advance for the year ended December 31, 2017? b. How much is the unearned portion of the rental collected in advance for the year ended December 31, 2017? c. Assuming that "Income method" was used in recording the precollection, what is the adjusting entry on December 31, 2017?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 8EB: On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services....

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